Automotive Axles reports improved margins despite flat revenue

Automotive Axles Limited reported Q1 FY26 revenue of INR498 crores, down 1% year-on-year, but improved EBITDA margins to 11.7% from 11.2% and PAT margins to 7.3% from 6.9%.

The company attributed profitability gains to cost reduction, automation initiatives, and a new business model involving direct sales to end customers. New products including 13.5 and 15-meter coach axles are entering production.

The company approved INR120 crores in capital expenditure for capacity enhancement and automation, expecting clearer margin visibility from Q3 FY26.